02.02.2015

The Ministry of Finance launched a new 5-year BGN-denominated government securities (GS) issue with maturity 04 February 2020. At the auction held today GS to the amount of BGN 50 million were successfully placed, with the average weighted yield being 1 per cent. The subscription totalled BGN 160.60 million, the bid-to-cover ratio being 3.21. The spread to the benchmark German Bunds in this segment is 105 b.p.

The participants showed strong interest both in the amount offered for competition orders sale and in the portion of non-competition orders sale determined for allocation among investors. Pension funds acquired the biggest amount of GS at the auction, i.e. 46.11%, followed by banks with 40.80%, guarantee and contractual funds with 7.07% and insurance companies with 6.02%.